On January 1,2007,Servant Company purchased a machine with an expected economic life of five years.On January 1,2009,Servant sold the machine to Master Corporation and recorded the following entry:
Master Corporation holds 75 percent of Servant's voting shares.Servant reported net income of $50,000,and Master reported income from its own operations of $100,000 for 2009.There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.

-Based on the preceding information,in the preparation of the 2009 consolidated balance sheet,machine will be:

Question

On January 1,2007,Servant Company purchased a machine with an expected economic life of five years.On January 1,2009,Servant sold the machine to Master Corporation and recorded the following entry:
Master Corporation holds 75 percent of Servant's voting shares.Servant reported net income of $50,000,and Master reported income from its own operations of $100,000 for 2009.There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.
 
-Based on the preceding information,in the preparation of the 2009 consolidated balance sheet,machine will be:

Quizplus · Accepted Answer

Machine will be debited for $25,000 in the preparation of the 2009 consolidated balance sheet because it is an asset and assets are debited.

On January 1,2007,Servant Company Purchased a Machine with an Expected